Knowledge Nugget: Understanding coal gasification and syngas for UPSC exam

Key takeaways:

1. With an outlay of Rs 37,500 crore, the Scheme seeks to incentivise 25 projects for production of syngas and downstream products, targeting gasification of approximately 75 million tonne (mt) of coal/lignite.

2. The new scheme is an addition to the existing viability gap funding scheme worth Rs 8,500 crore approved in 2024 for incentivising coal and lignite gasification projects. The newly approved scheme primarily focuses on surface gasification projects.

3. Under the scheme, financial incentive will be provided at a maximum of 20% of the cost of plant and machinery to be disbursed in four equal installments.

Coal to syngas (NotebookLLM)

4. This scheme is a major step advancing towards the national target of gasifying 100 Million Tonnes (MT) of coal by 2030, reducing dependence on Liquified Natural Gas (LNG), urea (~20% imported), ammonia (~100% imported), and methanol (~80–90% imported).

5. India has the fourth-largest coal reserves globally, with an estimated 389 billion tonnes (bt). Of this, 212 bt are classified as proven reserves, which means they are economically extractable with reasonable certainty based on a detailed Preliminary Feasibility Study.

Coal gasification

1. Coal gasification is a thermochemical process of converting coal into synthesis gas (syngas). It involves the oxidation of coal at higher temperatures and pressures to produce syngas. There are two main types of gasification: Surface gasification and Underground coal gasification (UCG).

2. In surface coal gasification, coal is first mined and then converted into gas in above-ground industrial reactors using oxygen, steam and high temperatures. In contrast, underground coal gasification converts coal into gas while it is still buried deep underground by injecting air or oxygen into coal seams through wells and extracting the resulting gas to the surface.

3. Currently, Jindal Steel Ltd operates India’s only gasification project with capacity of 1.80 million tons per annum (mtpa) at Odisha’s Angul district.

4. Coal India Ltd (CIL) is also implementing four coal gasification projects in partnership with other Central Public Sector Undertakings (CPSUs). Private players are also setting up four coal gasification projects.

What is Syngas?

1. Synthesis gas (also called syngas) is produced through the process of Coal gasification. It is a mixture of fuel-rich gases like carbon monoxide (CO), carbon dioxide (CO2), hydrogen (H2), and methane (CH4). The syngas can be used for producing Synthetic Natural Gas (SNG), energy fuel (methanol and ethanol), ammonia for fertilisers, and petro-chemicals.

2. Syngas can be used to produce: Synthetic Natural Gas (SNG), fuels (methanol, dimethyl ether (DME), synthetic fuels), Fertilisers (ammonia, urea), and Petrochemicals and other industrial feedstocks.

BEYOND THE NUGGET: COAL

1. Coal is a sedimentary, organic rock, which is composed mainly of carbon, hydrogen and oxygen. It is formed from vegetation that becomes buried between layers of rocks, over millions of years, to form coal seams due to combined effects of pressure and heat. That is why it is called a nonrenewable energy source.

2. The ‘organic maturity’ determines the quality of each coal deposit. It depends on temperature and pressure and by the length of time in formation.

3. These are four main types of coal: Peat, Lignite or ‘brown coal’, Bituminous, and Anthracite Coal. Anthracite with 80-95 per cent carbon is the best quality coal found in Jammu and Kashmir in small quantities.

4. Anthracite is the oldest coal from geological perspective. It is a hard coal composed mainly of carbon with little volatile content and practically no moisture. Lignite is the youngest coal from geological perspective. It is a soft coal composed mainly of volatile matter and moisture content.

5. According to the National Coal Inventory of 2025, the total estimated coal reserve (resource) of India is 400.715 billion tonnes as of 01.04.2025. According to the Indian Minerals Yearbook 2022, Gondwana sediments, coal deposits in India are primarily concentrated in the Gondwana sediments. As per the Ministry of Coal, the maximum reserve is concentrated in Odisha followed by Jharkhand, Chhattisgarh, West Bengal, and Madhya Pradesh.

6. Right now, coal is an important source for India’s energy security. As India heads into a “hotter-than-normal” summer, the government plans to rely more on coal-based power to meet peak summer demand.

7. Coal-based power plants already dominate India’s electricity generation mix, contributing over 70%. Gas contributes around 1-2% in the country’s overall power generation. While gas-based power accounts for a relatively small share of the energy mix, it plays a crucial role during non-solar hours, with nearly 10 GW of capacity typically relied upon during high-demand summer months.

Post Read Question

Consider the following statements: (UPSC CSE 2018)

1. In India, State Governments do not have the power to auction non-coal mines.

2. Andhra Pradesh and Jharkhand do not have gold mines.

3. Rajasthan has iron ore mines.

Which of the statements given above is/are correct?

(a) 1 and 2 only

(b) 2 only

(c) 1 and 3 only

(d) 3 only

(Sources: India’s growing focus on coal gasification amid global energy disruptions, Cabinet okays Rs 37,500 cr scheme for coal, lignite gasification; promotes use of indigenous tech, Indian Minerals Year Book 2022)

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